On Monday morning, the EUR/USD started the week’s trading by fluctuating near the 1.2100 mark. Note that the Friday’s drop passed the support of the June low level and reached below the 1.2100 level. Due to that reason, an extension of the decline is possible.
In the near term future, the rate could trade sideways until it reaches the resistance of a channel down pattern near the 1.2120 level. In addition, the 55-hour SMA could provide additional resistance. Afterwards, a potential decline would aim at the weekly S1 simple pivot point at 1.2062.
On the other hand, a potential breaking of the resistance at 1.2120 could result in a test of the resistance of the weekly simple pivot point at the 1.2140 level.
